Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $26,000 but the book value is $36,000. The firm's combined tax rate is 37% What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired Multiple Choice

Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $26,000 but the book value is $36,000. The firm's combined tax rate is 37% What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired Multiple Choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Firm X is considering the replacement of an old machine with one that has a purchase price of $100,000. The current market value of the old machine is $23,000 but the book value is $38,000. The firm's combined tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired. Multiple Choice $72,500 $78, 370 $84, 850 $69, 100
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Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $22,000 but the book value is $ 37,000. The firm's combined tax rate is 27%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired.
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